Shares rise as investors hunt bargains

The Australian sharemarket has opened higher after a firmer finish on Wall Street encouraged investors to cherry pick some beaten-down stocks.

Commsec market analyst Steven Daghlian said there was little movement in early trade and the market was likely to be taking a slightly positive lead from the US. ‘‘US markets gained slightly, but nothing really significant (happened overnight), European markets were mixed,’’ Daghlian said. ‘‘In early trade, anyway, the market’s slightly stronger.
But keep in mind that over the past week or so it’s been very, very volatile.’’
Brewer Foster’s shares were 3 cents higher at $4.92 after it announced a share buyback in an effort to ramp up its defences against a hostile takeover by SABMiller. Foster's also reported a full year net loss of $89 million and said it expects the rate of decline in Australia’s beer market to moderate in the coming months.
The major banks opened stronger, with ANZ up 4 cents at $19.34 and Westpac 8 cents higher at $19.44. National Australia Bank was 13 cents up at $22.34, while Commonwealth Bank gained 27 cents to $46.17.
Among the miners, BHP Billiton was up 21 cents at $37.74 and Rio Tinto was 84 cents, or 1.2 per cent, higher at $69.42.
The price of gold in Sydney opened at $US1906.2 per fine ounce, up $US13.75 from Monday’s local close at $US1892.45. Shares in gold miner Newcrest Mining were up 93 cents, or 2.3 per cent, at $41.13.